Timothy Sykes zeros in on penny stocks in his recent blog entitled, “Top Penny Stocks To Watch for June 2024.”
What are Penny Stocks?
These are stocks trading at $5 per share or less. Their market cap is usually micro — under $300 million in total stock equity.
These low-priced stocks are volatile and sketchy. Their stock price value is based on the expectations that the company will do great things.
“stocks trading at $5 per share or less. Their market cap is usually micro — under $300 million in total stock equity.
These low-priced stocks are volatile and sketchy”
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Timothy Sykes zeros in on penny stocks and recommends investors proceed with caution
“It’s important to proceed with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of emerging sectors like renewable energy and tech innovations, underscores the importance of a meticulous approach,” wrote Timothy Sykes.
“Before diving in, ensure that you have done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature,·” he added.
But here is the caveat; “Penny stock investments fail 99.9% of the time. Sure, there are some penny stock ETFs that post decent gains,” wrote Timothy Sykes.
Timothy Sykes zeros in on penny stocks, giving his top tips on how to select them
“Look for Big Percent Gainers,” he said.
Timothy Sykes uses stock screening tools to find penny stocks.
“Look for Big Percent Gainers”
TIMOTHY SYKES
“I use StocksToTrade — a powerful trading platform, with more than 40 built-in scans. It doesn’t hurt that some of them were tailored around my strategies,” he wrote.
Looking for a volume is the second task to finding penny stocks.
If there is a large volume, that is proof of robust demand.
Small-cap stocks move significantly on volume.
“Big daily trading volume usually signifies liquidity. Even if you lose money on these stocks, you can always unload them quickly,” he wrote.
“News catalysts can come from anywhere — Instagram, newsletters, actual news outlets” – Timothy Sykes
Penny stock news catalyst pumps up stock, which is the third tip
Bullish news pumps penny stocks, allowing insiders to buy into the stock and sell into the momentum.
“News catalysts can come from anywhere — Instagram, newsletters, actual news outlets,” he wrote.
Timothy Sykes believes that if the penny stock had a long run-up in the past, it could do it again.
Looking at its past performance data helps him to distinguish between a multi-day runner and a one-and-done spike.
“My usual advice still stands — react, don’t predict. Don’t research past data trying to predict when the stock’s going to run. Research it to understand the effect that unusual volume and news has on the stock, so you can react faster,” he wrote.
June top picks; Timothy Sykes zero in on penny stocks
Here they are;
- NYSE: AMC — AMC Entertainment Holdings Inc — The Meme Stock Winner That Jack Crushed
- NASDAQ: LIDR — Aeye Inc — The Autonomous Vehicle AI Stock
- NASDAQ: FFIE — Faraday Future Intelligent Electric Inc — The 9,600% Meme Stock Runner.
